Wot's in store for U$A?

[boxy]

I'm no economist... but a country can be viewed as just like a big business. It produces stuff and consumes stuff. It can go into debt up to a certain limit, before it becomes unsustainable. That limit is the amount of products that it can viably produce that others want in the medium term.

Without real production to back your economy and debt, you become a basket case nation.

How am I wrong in this assumption?

[IQSRLOW]

The leaf raker is so focused on the origin of currency that he totally ignores the economic implications of govt debt and deficit. No wonder the dipshit supports the left. No fucking clue

[Outlaw Yogi]

.

Well for every dollar that OZ actually has/owns we have 18 in circulation, meaning a dollar is really only worth a little more than 5 cents

Heretic, come back when you canshow me a 95% collapse in the purchasing power of the Ausssie.

LW ever heard of fractional reserve banking? .. where banks lend out more money than they can cover with deposits and assets .. well when a country as most seem to do these days puts more currency into circulation than it can cover in assets it devalues the currency .. inflation and hyperinflation may be good for speculators, but its a pain in the @)$# for most of us.
Money/currency is just pretty @($#wipe paper (or plastic) if you've got nothing to back it with.

[Outlaw Yogi]

Food prices rise sharply -- and there's more to come
http://www.seattlepi.com/food/431969_foodprices16.html

For the first time since 2008, inflation is hitting consumers in the stomach.

Grocery prices grew by more than 1 1/2 times the overall rate of inflation this year, outpaced only by costs of transportation and medical care, according to numbers released Wednesday by the U.S. Bureau of Labor Statistics.

The global demand for corn - used for food and ethanol - has swelled so much that feed costs for farmers and ranchers are being passed on to the consumer, Swanson said.

Gas, diesel play a role

Gas and diesel prices also are playing a role. Wheat costs went through the roof this year when 20 percent of Russia's crop was destroyed by drought and wildfires, causing the country, the third-largest producer in the world, to ban exports of the grain. The price of sugar, also used for ethanol in parts of the world, is priced at a two-decade high.

Kraft Foods Inc., one of the world's largest food producers, has already announced plans to increase its prices because of mounting ingredient costs and flagging sales. General Mills, maker of everything from flour and baking mixes to cereal and Yoplait yogurt, has said it, too, will raise some of its product prices in January. Experts said consumers can expect the same from Kellogg's and Nestle.

[J.W. Frogen]

I can't wait to see the look on China's face when the US says "we are not paying".

[Outlaw Yogi]

Maybe hardly anybody will be paying anyone ..

$2tn debt crisis threatens to bring down 100 US cities
http://www.guardian.co.uk/business/2010 ... -us-cities
Overdrawn American cities could face financial collapse in 2011, defaulting on hundreds of billions of dollars of borrowings and derailing the US economic recovery. Nor are European cities safe – Florence, Barcelona, Madrid, Venice: all are in trouble

[Outlaw Yogi]

Full Catastrophe Banking in 2011
http://www.banksterusa.org/content/full ... nking-2011

[Outlaw Yogi]

US states seek way to file for bankruptcy
http://www.presstv.ir/detail/161305.html

American policy makers are trying to determine whether they could let states declare bankruptcy as they confront crushing debts and dwindling revenues.


House Republicans and Senators from the two major political parties have shown an interest in the matter. They have called on bankruptcy lawyers and a former House speaker, Newt Gingrich, to come up with a solution which paves the way to such a measure, The New York Times reported on Thursday.

The report comes as states face a combined pension fund shortfall of USD 3 trillion, according to finance professors' estimate.

Proponents say bankruptcy could permit a state to alter its contractual promises and get out from under massive debts.

Nevertheless, states cannot seek protection in the US Bankruptcy Court as they are considered sovereign.

[Sappho]

[Outlaw Yogi]

Don't know if many notice, but the big geo-strategic issue behind the scenes is China's take over of rare earth mining, neodymium in particular, which is crucial for strong magnets. Neodymium/iron/boron permanent magnets are critical components of much of U$A's war machines/gadgets/equipment.
The Chinese takeover over of the industry coupled with supply cuts and price hikes has lead to the reopening of California's biggest neodymium mine.
Toyota's working on a magnetic propulsion system for cars, so needs the neodymium, but wants to limit its reliance on China.

Anybody interested in playing with super strong neodymium/iron/boron magnets might like:
http://www.forcefieldmagnets.com/catalo ... Path=23_37